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Investing.com -- ePlus inc. (NASDAQ:PLUS) stock rose 2.1% after the company announced it has signed a definitive agreement to sell its U.S. financing business to Marlin Leasing Corporation, which operates as PEAC Solutions.
The divestiture will provide ePlus with additional capital to focus on growth opportunities in the technology and services space, according to the company. PEAC Solutions is a portfolio company of the Asset Value Funds, which are sponsored and managed by global investment firm HPS Investment Partners, LLC.
Mark Marron, CEO and president of ePlus, stated that the sale will strengthen the company’s ability to invest in high-growth areas including artificial intelligence, cybersecurity, data center modernization, and high-performance networking. The company will continue to offer financing services to its technology customers through PEAC.
"We view the divestiture as a net-positive for ePlus long-term given it simplifies the business model and enables greater focus on tech and higher-end services," said William Blair analyst Maggie Nolan, who maintained an Outperform rating on the stock.
The transaction gives ePlus flexibility to accelerate plans for expanding its footprint and customer base, while pursuing both organic and acquisition-driven growth opportunities. The company was represented in the transaction by Macquarie Capital (USA) Inc. and K&L Gates LLP.
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